Happy New Year – Real Estate Investors

2010 is upon us!

After we have been in business on year (Sept – 08 to Sept 09), I made a post that summarized our results.  I will post similar numbers for Jan 1-09 to Dec 31-09.

2009 was a great year for us.

• We purchased 20 houses, for just over $2,000,000.
• We sold 12 houses, for just over $2,000,000.
• We started keeping some rentals: we have nine units with six of them rented, two under repairs and one for rent.
• We have four flips in progress right now: two are in sales escrow and should close by 1-15-2010, one is for sale and one is under repairs.
• We have three properties in escrow (I will write about them soon).

Nine of them where retail flips.

Total Sales Price: $1,736,00
Total Purchase Price: $743,00 (avg $82,555)
Rough Remodel Expense: $365,00 (avg $40,555)
Purchase Price & Remodel: $1,108,000
ARV Percentage: 63.8%
Avg Hold Time: 183 days

For the three wholesale properties:

Total Purchase Price: $315,300
Total Sales Price: $345,50
Rough Remodel Expense: $0
Purchase Price & Remodel: $315,300
Purchase Percentage: 91.3%
Avg Hold Time: 3 days

For the 6 Units that are rented:

Total Purchase Price: $457,000
Rough Remodel Expense: $118,500
Purchase Price & Remodel: $575,500
Total Appraised Value: $884,100 (due to the recent market conditions we could sell for more than appraised value)
Purchase Percentage: 65.0%
Total Monthly Rent Collected: $8,100 ($97,200 yearly)

Now the important part, what we are aiming for next year.

2010 Real Estate Goals

• Get to 20 rentals properties (not units)
  This is the main goal of the year.  We are already almost half-way there, so we definitely should be able to get there.  Although, the monthly cash-flow is not real exciting the long-term equity built is substantial on these properties.
• Make 36 Purchases (Rentals, Retail or Wholesale)
  I think this is going to be, by far the most difficult goal.  That is 3 purchases per month and almost double what we did this year.
• Raise $250,000 in Private Money
  Our goals require a lot of capital.  We have built up a substantial amount of our own working capital, but it is still one of our main bottle-necks.

The goals seem simple enough, but that is definitely a years full of work!  Wish us luck.  Don’t forget to write down your 2010 goals and look at them often.  I’ve had a paper hung on my office wall with these goals for the last two months.

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